On Friday, March 10, Elon Musk expressed his openness to purchasing Silicon Valley Financial institution following its collapse. Min-Liang Tan, CEO of Razer, urged on Twitter that Twitter can purchase SVB and remodel it right into a digital financial institution. Musk responded briefly, stating, “I’m open to the concept,” with out offering extra info.
I’m open to the concept
— Elon Musk (@elonmusk) March 11, 2023
On March 11, SVB Monetary Group, a lender that catered to startups, suffered a sudden collapse, inflicting turmoil in international markets and leaving doubtlessly billions of {dollars} value of capital owned by corporations and traders trapped.
Simply earlier than the weekend, California banking regulators shut down the financial institution by assigning it to a receivership below the Federal Deposit Insurance coverage Company (FDIC).
In a video message to staff, SVB’s chief Greg Becker acknowledged that he’s collaborating with banking regulators to seek for a companion for the financial institution. Nonetheless, he emphasised that there isn’t a assurance {that a} deal shall be finalized. At the moment, the lender is below the management of the Federal Deposit Insurance coverage Company (FDIC).
SVB and different financial institution executives promote shares
On March 10, Bloomberg reported that Greg Becker bought $3.6 million value of firm inventory by means of a buying and selling plan on February twenty seventh. In keeping with regulatory filings, this was the primary time in over a 12 months that the CEO of mother or father firm SVB Monetary Group had bought shares. Becker filed the plan on January twenty sixth, which permitted him to promote the 12,451 shares. The sale was carried out by means of a revocable belief that Becker manages.
Silicon Valley Financial institution CEO Greg Becker bought $3.6 million of firm inventory below a buying and selling plan lower than two weeks earlier than the agency disclosed intensive losses that led to its failure https://t.co/G8rFVzRpIs
— Bloomberg Markets (@markets) March 11, 2023
As early as final January, Becker stated the financial outlook was bettering after a downbeat 2022.
“We’re optimistic as a result of our crystal ball is a little bit clearer,” Becker advised CNBC. Whereas he anticipated public markets to stabilize, “We nonetheless assume within the first half there’s going to be extra volatility.”
Earlier than serving as president and CEO of SVB Monetary Group, Becker was one of many co-founders of SVB Capital, the corporate’s funding division. Moreover, he held the place of chairman for the Silicon Valley Management Group from 2014 to 2017 and was a member of the Digital Financial system Board of Advisors for the U.S. Commerce Division from 2016 to 2017.
Final 12 months, Elon Musk carried out a collection of inventory gross sales for Tesla to fund his acquisition of Twitter, which in the end prompted the share worth to lower. In April, he bought $8.5 billion value of inventory, adopted by $6.9 billion in August, $3.95 billion in November, and $3.6 billion in December, totaling nearly $23 billion.
Neither Musk nor SVB has since responded to the Tweet.